tv [untitled] November 1, 2011 3:31am-4:01am EDT
imax tiger this is the kaiser report the war of savers versus speculators. stacey her parent and you know who continues to win max kaiser the speculator that's right because they get all the free money. and they tear our heart our financial system. hard showrooms as they're doing in shanghai if they don't get their way so you can either politely protest around the world or you can scream and shout and get your way first headline here max banks stocks a blade you know we have a trillion something european wide bailout and the bankers were happy their shares soared yes the speculators they're ransom requirements were met you know this was
all established in two thousand and eight remember when hank paulson put a gun to congress and said and got almost a trillion dollars from congress to give goldman sachs's buddies now they did the same thing in the euro tarp so this is moral hazard times moral hazard it's moral hazard to the nth degree and the worse you are paying back your loans the cheaper the interest rate gets and the more money you get how do i get that deal in other words let me twice only say however if i were to throw up into a bucket of vomit if i'm part of the top one percent i can take that to the fed and get a billion dollar loan is that as collateral but if i'm in the bottom ninety nine percent all i've got is a bucket to spew. well let's look at the bottom ninety nine percent in this next headline a banner day for the one percent as bank stocks soar this is a commentary from david callaway on dow jones market watch and he says in one of the more bizarre twists the fate that only markets can bestow the occupy movements
burst to fame around the world this month has been accompanied by the biggest october for the dow jones industrial average in its one hundred fifteen year history more than eleven percent as of this writing so notice those words he uses their bizarre twist of fate that only markets can bestow when in fact it was heads of central banks around the world heads of government around the world heads of finance departments around the world who are in fact responsible for the booming stock market has nothing to do with the one percent creating wealth that's what the occupy wall street movement the only way to be taken seriously is to attack stock price if the other side is going to point to a rising stock price and say see we're right you're wrong then the only answer to that is to take down a stock price like coca-cola for example take it down to zero not that one hundred sixty billion dollars company it's within everyone's ability to do so just stop drinking coke but i've a feeling that these occupy wall street types they like to talk all day but when it
comes to sacrifice like not drinking a coca-cola product they're not willing to make that sacrifice but you know again the more important thing to look at here is the speculators and why they get their way and they shriek and they shout and they say the world is ending and the ninety nine percent who are trying to save are eking out a living they're just being quiet and hoping to god that they can save their job and that's the only thing they've got going meanwhile the top one percent have trillions and debts and they freak out and they scare the bejesus out of any single person that walks in their way dare they mention that it's all fraud and it's all puffery an imaginary wealth you know this is. one of the wall street crowd is going to school in the pentagon you know the pentagon is of worried about existential threat we need another five trillion dollars for some advanced weaponry and something on wall street they say oh there's an existential economic threat we need high frequency trading algorithmic trading speeded up so we need another bailout of
five trillion dollars and they always use these imaginary threats to feed their pockets and when they don't get their way in or they raise the red alert as they do in washington to get their way or they crash the market like they do on wall street to get their way well that's in the next headline europe's rescue euphoria threatened as portugal enters grecian vortex yes you gave into the speculator terrorist on greece and now they're going for portugal monetary contraction in portugal we are told has intensified an alarming rate and is mimicking the pattern seen in greece before its economy spiraled out of control telegraphed interview simon ward of henderson financial and he says the e.c.b. must cut interest rates immediately and launch a full scale blitz of quantitative easing of up to ten percent of euro zone g.d.p. well this is the plan for the eurozone that they're going to lever that up by trillions and trillions of euro and try to completely debase the euro because as
our friend talks about it's a currency war where a currency basement is the goal and now the euro zone has gotten away from all of the bundesbank concerns about having a say unit of currency yeah no central bank cares at all about that max and in a currency world they pretend that they're where the responsible ones in the room where the buddhist bank and really we're keeping everybody else honest to the germans now know that merkel has fallen what the financial terrorists they do they realize that they're going to lose their sovereignty to the i.m.f. to the germans and i guess that greek then lose their sovereignty we don't care we just go. they're to get drunk italy with us by our shoes and we don't care if they lose their sovereignty but do the german people now realize that they're about to lose their sovereignty to the i.m.f. out of they feel about that he want to give don't give up the ghost german people tell me one population that hasn't iceland stood up to the bank and turns now we're
speaking to a young stoner next week and she says in fact it's the opposite so anyone to not even electing a lesbian to run your country saved you my god so let's look at how the other speculators operate and we see that the chinese are learning very well they're very smart they mimic very well by the way that's how their education system is all rote learning now look at how they're rote learning from the west how they are seeing who the power lies with shanghai homeowner smash showroom in protest over falling prices a group of about four hundred homeowners a shanghai demonstrated publicly in damage to show room operated by their property developer after the company said it cut prices apparently they cut the prices by twenty five percent because no buyers new buyers were showing up and one of the protesters is quoted as saying we require a refund because the loss we are suffering now is too great for us to afford so how is that not the same as hank paulson they looked at hank paulson they said that guy
is a genius he goes i need a refund i require a response for all these bogus derivatives i had goldman sachs dumped onto the population what about the teamsters goldman sachs lost money in their pension fund and only by threatening physical violence were they able to get that money back yeah but again on that one small thing yes there they were perhaps one but jibe oh brock's on here's a video another remakes sent to us you might like it. so . you. know you. like yeah those remarks are nice i like oh give them
a coming well so let's look at the side of the savers now let's see if the few headlines coming from the savers judge challenges two hundred eighty five million dollars citigroup settlement this is judge jed rake off and manhattan and his challenge to lawyers to explain why he should approve a settlement of serious securities fraud allegations when citi group incorporated neither admits nor did nice wrongdoing so remember last week we covered the story where citi group settled a one billion dollar fraud fraud. again fraud they settled this fraud for two engine eighty five million of which ninety five million is fine with s.c.c. member we have a conversation we're saying that how do they get away with this idea where they don't want to admit fraud but just pay a fine but after committing fraud so judge breakoff asked how can a securities fraud of this nature magnitude be the result simply of negligence and he also asked why citi group shareholders not the individual executives responsible
for the alleged fraud are required to pay so once again this is the savers versus speculators the savers take it they are quiet there obedient and here we have the savers behind the wave of citi group speculators who were all involved in the fraud because remember bernie made off was able to defraud people of sixty billion dollars because they all knew most of his investors knew he was a fraudster but they assumed that they were gaining from it that he was front running based on his insider knowledge the same thing is here's the shareholders just quietly saying ok will obediently pay this two hundred eighty five million dollars fine because we know that there's probably far worse that they've stolen on our behalf and as long as it will just pay this little finding move on to shareholders a sunni group have no expectation in the u.s. economy that fraud would be penalized at any time so they never give it a second thought even though they know the banks are committing fraud they don't see anyone using the law to stop any of these banks from committing fraud so why
should they be the ones to stand up and say we don't want you committing fraud when it obviously is the accepted modus operandi of the entire industry the industry is based on fraud yes and now here you have the third largest bank in america citi group involved in this f.c.c. decision where they get to just pay this fine and not admit to any guilt now look at how the bottom ninety nine percent are treated eleven charged one billion dollar us real world health scam. so eleven people were charged last week in a one billion dollar fraud where employees of a busy new york commuter rail service used fake medical diagnoses to boost their incomes with disability payouts these are union members on the long island railroad and they face twenty years in prison for this one billion dollar fraud that's their penalty for committing a crime relatively speaking doesn't even exist when you compare to what citigroup
is doing well how how can. truly in dollars alone go missing from the u.s. economy in fraud thirteen trillion which dwarfs this fraud here and nobody has faced any time not even an investigation because the bankers who committed the fraud also own shares and companies like correction corps of america which is a private prison operator that needs new prisoners to turn a profit so they like it when these people go to joe and finally max the biggest insurrectionist against banker occupation out there is gold and that has been the most trouble sum of all the insurrectionists to the global banking cartel final headline venezuela scrambles to bring home gold reserves we've been following this apparently the hundred ninety ninety tons that venezuela has asked for back from mostly from the bank of england is on its way but the propaganda against hugo chavez for asking for his gold back is stunning in this because they're saying it's just the latest in
a string of grand gestures and controversial plans by the unpredictable socialist leader so they're ridiculing him as if he this is some ridiculous plan that one should want your own gold in your nation no again i ask about germany they're nervous about their gold sixty percent of it sell them to the new york banks in america that was a big headline and built their biggest tabloid in germany so germany is having their currency deflated a way to inflated away to nothing because merkel is drank the kool-aid of psychosis . and they don't have most of the gold that they think that they have o'boy hey let's throw a little match into a tinder box called german social unrest and see what happens that should be fun all right stacy ever thanks so much for being on the kaiser report thank you max don't go away much more coming your way so stay right there.
you're welcome back to the kaiser report time now to go to new york and speak with lay on the grass goodman former journalist at the wall street journal and author of the asylum renegades the renegade to hijack the world oil market leader welcome back to the kaiser report thanks for having me max all right bloomberg business week over occupy wall street asks who's behind the mask you know you've been.
the occupy wall street leaders tells what's going on down there is there someone behind the mask is this is a legitimate is a genuine what are your impressions what i find pretty interesting about this question is a lot of it has to do with who's holding the purse strings and then of course who's talking to those holding the purse strings and it seems right now there are some quiet private funders and then there are the protestors and none of them are willing to say that there is a leader but they have identified some of the funders and strangely enough there's a main funder robert helper who's in the asylum the book i wrote he was one of the oil traders who had been very successful was an independent oil trader didn't work for anybody and he is giving them thousands and thousands of dollars to fund the movement ok so this gentleman is betraying his class. i don't know if he was ever not for what the protestors are for he happened to be very like you i think he
counts and stuff as someone who he's also quite intelligent so he was a very good trader he did very well he's retired now and i think he empathizes with because there are a lot of people even. even on wall street there are critical thinkers who think that at this point democracy has been robbed and has been undermined by money so there are people who are in the one percent who agree warren buffett would be one of them as well he publicly agrees anyway i think behind the scenes he still likes to take advantage of the one percent perfectly well not only that but he likes to break the law and he likes to sponsor people who break the law like walk over the bank part of wells fargo who broke the law graciously that maybe he's a insider trader a market manipulator and this has been well documented and he pays lip service to his secretary all the time we know it's true love is charlie monger but you know also that he is no way shape or form going to do anything to stop the huge
social injustice that's ripping the country apart is like a suicide cult these speculators because ultimately it down to the day they're destroying their own country they'll have no place to go and they'll probably all go the way of moammar gadhafi so is it some kind of cult that drives them a cultish thinking. and i say maybe there is not a physical cause but there is a methodology to the thought. i don't know if you saw i can buy wall street has a few websites but one of them actually has a video that was sent widely it was a trader in london who was basically saying that traders really don't care if there is a solution to the problems that they don't care if the debt crisis in europe is solved i don't care if the us is swallowed by its own success because they just want to exploit opportunities that stem from that and he was quite brazen about saying it it shocked the people interviewing him at the t.v. station in london and then this video had millions and millions of heads because it
was seen by the occupy wall street crowd as an admission by the traders themselves that there's no interest whatsoever in solving problems but in exploiting the disaster right a suicide bomb. walks into a cafe in television or somewhere else in the world they don't care who they kill including themselves because they're psychotic same thing with with lloyd blankfein jamie diamond there are psychotic suicide bankers we saw that on nine eleven but what do you think about this obama certainly isn't going after banking crimes that every republican candidate is promising to go even easier on these welfare queens on wall street. your thoughts is there anything in the pipeline to stop massive welfare giveaways on wall street i think the purchasers have the right idea you and i were on this program not too long ago or earlier this year and i said the only thing at this point is people just running into the streets and disrupting and if
you speak with some of the more movement building type protesters as opposed to what the protestors amongst themselves called the tourists they will talk about you know the art of disruption our strategic civil disobedience they are studying it they have training sessions every day down on wall street how to do this properly without having fingers pointed out them as being violent ok so they're upping up their game in terms of financial warfare to fight back against the speculators and searching for economies of scale searching for leverage searching for ways to push back so far nothing has really worked out let me ask you about the invention of the modern derivatives contract because in your book the asylum which talks about the birth of the modern oil trading platforms derivatives and how that evolved were a huge part of the story so just to give viewers a bit of a background here can you just describe how the derivatives came into being in the
oil futures market and how that changed the market substantially oh well in the oil market in the energy market in general it was it was right here in manhattan that traders first decided they're going to try to trade oil when reagan lifted restrictions allowing oil. well and and heating oil crude oil and gas and that would be gasoline and then as well as natural gas all these things are now allowed to freely be traded not be regulated at fixed prices so when that happened it freed up the market to to trade in a way it never had been able to before it was like letting the dollar float after the gold standard was lifted and that introduced these derivatives in my book i talk about the traders who first put these together and then of course the koch brothers further developed over the counter products as you mentioned and those derivatives were even more complex and exotic they were not standardized futures contracts which are also derivatives they were tailored bets between two parties so they call it bilateral you know parties would be you and i might enter
a private agreement and therefore unregulated were sophisticated players nobody's allowed in our business we're not trading on an exchange it's all over the counter which is off market to follow up on the gold brothers we know that they are involved in funding and creating some oil derivatives. and now they're involved in funding the tea party so this is an interesting story line there with the koch brothers they seem to be able to manipulate politics and markets simultaneously there's only one on their level in terms of manipulating both politics and markets . well you know i'll tell you something i met with the head of m n a for goldman sachs told me he said if you really want to look at something you should look at the koch brothers because the things that they are doing are beyond description and when some when that happens goldman says soon that he might know what he's talking about the koch brothers they are very very secretive and recently they pulled out of cushing oklahoma where all the oil is kept in the united states they actually
just got rid of all their assets or you know they at least don't have a name in there anymore i'm assuming they're leasing space so that they don't have to be associated with the game but i'm pretty sure they're still in there they're just don't want anyone to know about it. they like to do everything very privately so finding the tea party movement you know this this group americans for prosperity you know that is one of the main funding vehicles and they named it that because it sounds very innocent and of course we all agree with americans for prosperity that sounds very very good to all of us so it's very cover about it they're really serious libertarians they really believe that they are leading the way libertarian in the in that by their definition of course means financial terrorism it's not true libertarianism yes ok now i read somewhere that for every barrel of oil that people actually use in business there are about sixty thousand barrels of oil traded in as represented by various derivatives of oil around the world. so
the enormous abstraction of that market and the leverage and control by the people who feed into the derivatives market the people who lend the money to the derivative terrorists like the j.p. morgans and the goldman sachs they have a market that is not only destroying people's access to energy but also destroying the global market as a whole but i want to move on to another big market that you cover and that are the water derivatives so after the oil derivatives that we've got water derivatives what are they where is the market who's the biggest player well who's the biggest player that's tough i think that the market itself is still maturing there are some very big hedge funds that have emerged i think the most respectful respectable one and i think the most capitalized one is called some a global in san diego and they've been added since one thousand nine hundred nine they have about five hundred million i believe under management water still seen as
a pretty chicken market because it's so heavily regulated it is the last big market in the united states that is not regulated so it is not something where you have a ton of players coming in all right so now the words the goal for those who are. bringing in the water derivatives trading market is to go the route of the oil market so for every gallon of water consumed to keep life float on this planet they'll be sixty thousand gallons manipulated in the futures market making a few people rich who then will be able to afford to buy water to keep alive and everyone else will of course die but i guess again it gets back to that suicide mentality of the speculator on wall street and that kind of cultist jim jones guyana a cool aid mentality that is destroying the american economy but making a few people very wealthy now limit graph goodman do you have any final thoughts on the occupy wall street and the state of financial markets and the fraud that is now
running the entire american economy how do you see this changing in any way or is it pretty well just doomed well i want to leave you with two thoughts and the first one is on water most speculators don't believe that water should be speculated on because they understand the dangers inherent in what could happen as that market matures i don't think right now we're looking at a situation where water could be hoarded and where the prices could be jacked up the same way with oil but there's a fear that that could happen further along the way a lot of money does go to let me come in for a second i mean we've got the example of bolivia and bechtel who privatized rainwater and people died because bechtel the u.s. conglomeration with affiliates on wall street decided that water they own the rainwater so we know the mentality of the psychopath on wall street and the american businessman is to rape and pillage that we know so water is clearly an untapped market so what's to stop them if you're saying that they're going to start not going to do this because why again i don't get that what's going to stop them
there's no regulation there's no morality there's no ethics it's just pure wholesale destruction i absolutely don't disagree of you know what i was what i meant in what i was saying with the traders themselves. speculation in water i don't think we've seen the full extent because it's not been regulated what can be achieved in terms of dangers inherent in treating water but they themselves fear the results of that while there are very responsible traders some of global by the way i consider them very ethical in the way they handle it but there are many others that are looking to explain and that is a fear and that is why this industry means regulated and probably well for as long as money is not shows a wing or regulation out again but that could happen right well yeah as far as water becoming a dangerous market every heroin addict fears that hot shot that's going to kill him but they don't stop shooting heroin day the speculators are not going to stop it's all somebody stops them for them all right well anyway mcgrath goodman thanks so
much for being on the casa report thanks for having me take care mac. all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest liam mcgrath goodman she's the author of the asylum the renegades who hijacked the world oil market you can tweet us at kaiser report or visit our facebook page at facebook dot com kaiser report if you want to send me an e-mail please do so at kaiser report at r t t v are you until next time this is max guys are saying bye you know all.
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